Which of the following best defines a market development strategy in the context of competitive markets?

• A. Selling new products in existing markets
• B. Selling new products in new markets
• C. Selling existing products in new markets
• D. Increasing sales of existing products in current markets

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of a market development strategy. In microeconomics and business strategy, market development involves expanding the reach of existing products to new customer segments or geographic areas.
2. Step 2: Identify the key components of the options given: 'new products' vs. 'existing products' and 'existing markets' vs. 'new markets'.
3. Step 3: Recall that a market development strategy specifically focuses on selling existing products in new markets, which means targeting new customer groups or regions with products that the company already offers.
4. Step 4: Compare this with other strategies: selling new products in existing markets is product development; selling new products in new markets is diversification; increasing sales of existing products in current markets is market penetration.
5. Step 5: Conclude that the best definition of a market development strategy is 'selling existing products in new markets' because it aligns with expanding market reach without changing the product.